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NFIP General Property Form


National Flood Insurance Program
General Property Form
Standard Flood Insurance Policy

GENERAL PROPERTY FORM
Summary of Significant Changes, December 31, 2000
1. Section III. Property Covered, A. Coverage A -
Building Property, 3.
Additions and extensions to buildings that are connected
by a rigid exterior wall, a solid load-bearing interior wall, a
stairway, an elevated walkway, or a roof may be insured
as part of the building. At the option of the insured, these
extensions and additions may be insured separately.
Additions and extensions that are attached to and in
contact with the building by means of a common interior
wall that is not a solid load-bearing wall are always
considered part of the building and cannot be insured
separately.
2. Section III. Property Covered, B. Coverage B -
Personal Property, 5. Special Limits
Coverage for fine arts, collectibles, jewelry, and furs, etc.,
has been increased to $2500.
3. Section III. Property Covered B. Coverage B -
Personal Property, 8.
Coverage for condominium unit owners has been
extended to apply up to 10 percent of the contents
coverage for losses to interior walls, floors, and ceilings
not covered by the condominium association's master
policy.
4. Section III. Property Covered, C. Coverage C -
Other Coverages, 2.a. & b.
Coverage for the two loss avoidance measures
(sandbagging and relocation of property to protect it from
flood or the imminent danger of flood) has been increased
to $1,000 for each.
5. Section III. Property Covered, C. Coverage C -
Other Coverages, 3. Pollution Damage
Coverage for damage caused by pollutants to covered
property has been limited to $10,000. This does not cover
the cost of testing for or monitoring of pollutants unless it
is required by law or ordinance.
6. Section IV. Property Not Covered, 5.a. & b.
Coverage has been changed to pay for losses to selfpropelled
vehicles used to service the described location
or designed to assist handicapped persons provided that
the vehicles are in a building at the described location.
7. Section IV. Property Not Covered, 7.
Coverage is now specifically excluded for scrip and stored
value cards.
8. Section IV. Property Not Covered, 14.
Coverage for swimming pools, hot tubs, and spas (that are
not bathroom hot tubs or spas), and their equipment is
now excluded.
9. Section V. Exclusions, B.1 & 2.
The explanation of when coverage begins as it relates to a
loss in progress has been simplified.
10. Section V. Exclusions, C.
Coverage has been clarified to pay for losses from land
subsidence under certain circumstances. Subsidence of
land along a lake shore or similar body of water which
results from the erosion or undermining of the shoreline
caused by waves or currents of water exceeding cyclical
levels that result in a flood continues to be covered. All
other land subsidence is now excluded.
11. Section V. Exclusions, D.4.b.(3)
Coverage is now excluded for water, moisture, mildew, or
mold damage caused by the policyholder's failure to
inspect and maintain the insured property after the flood
waters recede.
12. Section V. Exclusions, D.6.
Coverage is added for damage from the pressure of water
against the insured structure with the requirement that
there be a flood in the area and the flood is the proximate
cause of damage from the pressure of water against the
insured structure.
13. Section VII. General Conditions, G. Reduction
and Reformation of Coverage, 2.a.(2)
If it is discovered before a claim occurs that there is
incomplete rating information, the policyholder has 60 days
to submit missing rating information. Otherwise, the
coverage is limited to the amount of coverage that can be
purchased for the premium originally received and can only
be increased by an endorsement that is subject to the
appropriate waiting period (currently 30 days).
Page 1 of 18
FEDERAL EMERGENCY MANAGEMENT AGENCY
NATIONAL FLOOD INSURANCE PROGRAM
STANDARD FLOOD INSURANCE POLICY
GENERAL PROPERTY FORM
PLEASE READ THE POLICY CAREFULLY. THE FLOOD INSURANCE PROVIDED IS SUBJECT TO LIMITATIONS,
RESTRICTIONS, AND EXCLUSIONS.
THIS POLICY PROVIDES NO COVERAGE:
1. IN A REGULAR PROGRAM COMMUNITY, FOR A RESIDENTIAL CONDOMINIUM BUILDING, AS DEFINED IN THIS
POLICY; AND
2. EXCEPT FOR PERSONAL PROPERTY COVERAGE, FOR A UNIT IN A CONDOMINIUM BUILDING.
I. AGREEMENT
The Federal Emergency Management Agency (FEMA)
provides flood insurance under the terms of the National
Flood Insurance Act of 1968 and its amendments, and
Title 44 of the Code of Federal Regulations (CFR).
We will pay you for direct physical loss by or from flood
to your insured property if you:
1. Have paid the correct premium;
2. Comply with all terms and conditions of this policy;
and
3. Have furnished accurate information and statements.
We have the right to review the information you give us at
any time and to revise your policy based on our review.
II. DEFINITIONS
A. In this policy, "you" and "your" refer to the insured(s)
shown on the Declarations Page of this policy.
"Insured(s)" includes: Any mortgagee and loss payee
named in the Application and Declarations Page,
as well as any other mortgagee or loss payee
determined to exist at the time of loss in the order of
precedence. "We," "us," and "our" refer to the insurer.
Some definitions are complex because they are provided
as they appear in the law or regulations, or result from
court cases. The precise definitions are intended to protect
you.
Flood, as used in this flood insurance policy, means:
1. A general and temporary condition of partial or
complete inundation of two or more acres of normally
dry land area or of two or more properties (at least
one of which is your property) from:
a. Overflow of inland or tidal waters;
b. Unusual and rapid accumulation or runoff of
surface waters from any source;
c. Mudflow.
2. Collapse or subsidence of land along the shore of a
lake or similar body of water as a result of erosion or
undermining caused by waves or currents of water
exceeding anticipated cyclical levels that result in a
flood as defined in A.1.a. above.
B. The following are the other key definitions that we use
in this policy:
1. Act. The National Flood Insurance Act of 1968 and
any amendments to it.
2. Actual Cash Value. The cost to replace an insured
item of property at the time of loss, less the value of
its physical depreciation.
3. Application. The statement made and signed by you
or your agent in applying for this policy. The
application gives information we use to determine
the eligibility of the risk, the kind of policy to be
issued, and the correct premium payment. The
application is part of this flood insurance policy. For
us to issue you a policy, the correct premium
payment must accompany the application.
4. Base Flood. A flood having a one percent chance of
being equaled or exceeded in any given year.
Page 2 of 18
5. Basement. Any area of the building, including any
sunken room or sunken portion of a room, having its
floor below ground level (subgrade) on all sides.
6. Building.
a. A structure with two or more outside rigid walls
and a fully secured roof, that is affixed to a
permanent site;
b. A manufactured home (a "manufactured home,"
also known as a mobile home, is a structure: built
on a permanent chassis, transported to its site in
one or more sections, and affixed to a permanent
foundation); or
c. A travel trailer without wheels, built on a chassis
and affixed to a permanent foundation, that is
regulated under the community's floodplain
management and building ordinances or laws.
Building does not mean a gas or liquid storage tank
or a recreational vehicle, park trailer, or other similar
vehicle, except as described in B.6.c., above.
7. Cancellation. The ending of the insurance coverage
provided by this policy before the expiration date.
8. Condominium. That form of ownership of real
property in which each unit owner has an undivided
interest in common elements.
9. Condominium Association. The entity made up of
the unit owners responsible for the maintenance and
operation of:
a. Common elements owned in undivided shares by
unit owners; and
b. Other real property in which the unit owners
have use rights ;
where membership in the entity is a required condition
of unit ownership.
10. Declarations Page. A computer-generated summary
of information you provided in the application for
insurance. The Declarations Page also describes the
term of the policy, limits of coverage, and displays
the premium and our name. The Declarations Page
is a part of this flood insurance policy.
11. Described Location. The location where the insured
building or personal property are found. The
described location is shown on the Declarations
Page.
12. Direct Physical Loss By or From Flood. Loss or
damage to insured property, directly caused by a
flood. There must be evidence of physical changes to
the property.
13. Elevated Building. A building that has no basement
and that has its lowest elevated floor raised above
ground level by foundation walls, shear walls, posts,
piers, pilings, or columns.
14. Emergency Program. The initial phase of a
community’s participation in the National Flood
Insurance Program. During this phase, only limited
amounts of insurance are available under the Act.
15. Expense Constant. A flat charge you must pay on
each new or renewal policy to defray the expenses of
the Federal Government related to flood insurance.
16. Federal Policy Fee. A flat charge you must pay on
each new or renewal policy to defray certain
administrative expenses incurred in carrying out the
National Flood Insurance Program. This fee covers
expenses not covered by the expense constant.
17. Improvements. Fixtures, alterations, installations, or
additions comprising a part of the insured building.
18. Mudflow. A river of liquid and flowing mud on the
surfaces of normally dry land areas, as when earth is
carried by a current of water. Other earth movements,
such as landslide, slope failure, or a saturated soil
mass moving by liquidity down a slope, are not
mudflows.
19. National Flood Insurance Program (NFIP). The
program of flood insurance coverage and floodplain
management administered under the Act and
applicable Federal regulations in Title 44 of the Code
of Federal Regulations, Subchapter B.
20. Policy. The entire written contract between you and
us. It includes:
a. This printed form;
b. The application and Declarations Page;
c. Any endorsement(s) that may be issued; and
d. Any renewal certificate indicating that coverage
has been instituted for a new policy and new
policy term.
Only one building, which you specifically described in
the application, may be insured under this policy.
21. Pollutants. Substances that include, but are not
limited to, any solid, liquid, gaseous, or thermal irritant
or contaminant, including smoke, vapor, soot, fumes,
acids, alkalis, chemicals, and waste. "Waste"
includes, but is not limited to, materials to be recycled,
reconditioned, or reclaimed.
22. Post-FIRM Building. A building for which
construction or substantial improvement occurred
Page 3 of 18
after December 31, 1974, or on or after the effective
date of an initial Flood Insurance Rate Map (FIRM),
whichever is later.
23. Probation Premium. A flat charge you must pay on
each new or renewal policy issued covering property
in a community that the NFIP has placed on probation
under the provisions of 44 CFR 59.24.
24. Regular Program. The final phase of a community's
participation in the National Flood Insurance
Program. In this phase, a Flood Insurance Rate Map
is in effect and full limits of coverage are available
under the Act.
25. Residential Condominium Building. A building,
owned and administered as a condominium,
containing one or more family units and in which at
least 75 percent of the floor area is residential.
26. Special Flood Hazard Area. An area having special
flood, or mudflow, and/or flood-related erosion
hazards, and shown on a Flood Hazard Boundary
Map or Flood Insurance Rate Map as Zone A, AO,
A1-A30, AE, A99, AH, AR, AR/A, AR/AE, AR/AH,
AR/AO, AR/A1-A30, V1-V30, VE, or V.
27. Stock. Merchandise held in storage or for sale, raw
materials, and in-process or finished goods, including
supplies used in their packing or shipping. Stock
does not include any property not covered under
Section IV. Property Not Covered, except the
following:
a. Parts and equipment for self-propelled vehicles;
b. Furnishings and equipment for watercraft;
c. Spas and hot-tubs, including their equipment;
and
d. Swimming pool equipment.
28. Unit. A unit in a condominium building.
29. Valued Policy. A policy in which the insured and the
insurer agree on the value of the property insured,
that value being payable in the event of a total loss.
The Standard Flood Insurance Policy is not a valued
policy.
III. PROPERTY COVERED
A. COVERAGE A - BUILDING PROPERTY
We insure against direct physical loss by or from flood
to:
1. The building described on the Declarations Page at
the described location. If the building is a
condominium building and the named insured is the
condominium association, Coverage A includes all
units within the building and the improvements
within the units, provided the units are owned in
common by all unit owners.
2. We also insure building property for a period of 45
days at another location, as set forth in III.C.2.b.,
Property Removed to Safety.
3. Additions and extensions attached to and in contact
with the building by means of a rigid exterior wall, a
solid load-bearing interior wall, a stairway, an
elevated walkway, or a roof. At your option, additions
and extensions connected by any of these methods
may be separately insured. Additions and extensions
attached to and in contact with the building by means
of a common interior wall that is not a solid loadbearing
wall are always considered part of the
building and cannot be separately insured.
4. The following fixtures, machinery, and equipment,
which are covered under Coverage A only:
a. Awnings and canopies;
b. Blinds;
c. Carpet permanently installed over unfinished
flooring;
d. Central air conditioners;
e. Elevator equipment;
f. Fire extinguishing apparatus;
g. Fire sprinkler systems;
h. Walk-in freezers;
i. Furnaces;
j. Light fixtures;
k. Outdoor antennas and aerials attached to
buildings;
l. Permanently installed cupboards, bookcases,
paneling, and wallpaper;
m. Pumps and machinery for operating pumps;
n. Ventilating equipment;
o. Wall mirrors, permanently installed; and
p. In the units within the building, installed:
(1) Built-in dishwashers;
(2) Built-in microwave ovens;
(3) Garbage disposal units;
(4) Hot water heaters, including solar water
heaters;
(5) Kitchen cabinets;
(6) Plumbing fixtures;
(7) Radiators;
(8) Ranges;
(9) Refrigerators; and
(10) Stoves.
Page 4 of 18
5. Materials and supplies to be used for construction,
alteration, or repair of the insured building while the
materials and supplies are stored in a fully enclosed
building at the described location or on an adjacent
property.
6. A building under construction, alteration, or repair at
the described location.
a. If the structure is not yet walled or roofed as
described in the definition for building (see II.B.
6.a.), then coverage applies:
(1) Only while such work is in progress; or
(2) If such work is halted, only for a period of up
to 90 continuous days thereafter.
b. However, coverage does not apply until the
building is walled and roofed if the lowest floor,
including the basement floor, of a non-elevated
building or the lowest elevated floor of an
elevated building is:
(1) Below the base flood elevation in Zones
AH, AE, A1-A30, AR, AR/AE, AR/AH,
AR/A1-A30, AR/A, AR/AO; or
(2) Below the base flood elevation adjusted to
include the effect of wave action in Zones VE
or V1-V30.
The lowest floor levels are based on the bottom of
the lowest horizontal structural member of the floor
in Zones VE or V1-V30 and the top of the floor in
Zones AH, AE, A1-A30, AR, AR/AE, AR/AH,
AR/A1-A30, AR/A, AR/AO.
7. A manufactured home or a travel trailer as described
in the Definitions section (see II.B.6.b.and II.B.6.c.).
If the manufactured home or travel trailer is in a
special flood hazard area, it must be anchored in
the following manner at the time of the loss:
a. By over-the-top or frame ties to ground anchors;
or
b. In accordance with the manufacturer's specifications;
or
c. In compliance with the community's floodplain
management requirements
unless it has been continuously insured by the NFIP
at the same described location since September 30,
1982.
8. Items of property in a building enclosure below the
lowest elevated floor of an elevated post-FIRM
building located in Zones A1-A30, AE, AH, AR,
AR/A, AR/AE, AR/AH, AR/A1-A30, V1-V30, or VE, or
in a basement, regardless of the zone. Coverage is
limited to the following:
a. Any of the following items, if installed in their
functioning locations and, if necessary for
operation, connected to a power source:
(1) Central air conditioners;
(2) Cisterns and the water in them;
(3) Drywall for walls and ceilings in a basement
and the cost of labor to nail it, unfinished and
unfloated and not taped, to the framing;
(4) Electrical junction and circuit breaker boxes;
(5) Electrical outlets and switches;
(6) Elevators, dumbwaiters, and related equipment,
except for related equipment installed
below the base flood elevation after
September 30, 1987;
(7) Fuel tanks and the fuel in them;
(8) Furnaces and hot water heaters;
(9) Heat pumps;
(10) Nonflammable insulation in a basement;
(11) Pumps and tanks used in solar energy
systems;
(12) Stairways and staircases attached to the
building, not separated from it by elevated
walkways;
(13) Sump pumps;
(14) Water softeners and the chemicals in them,
water filters, and faucets installed as an
integral part of the plumbing system;
(15) Well water tanks and pumps;
(16) Required utility connections for any item in
this list; and
(17) Footings, foundations, posts, pilings, piers,
or other foundation walls and anchorage
systems required to support a building.
b. Clean-up.
B. COVERAGE B - PERSONAL PROPERTY
1. If you have purchased personal property coverage,
we insure, subject to B.2., 3., and 4. below, against
direct physical loss by or from flood to personal
property inside a fully enclosed insured building:
a. Owned solely by you, or in the case of a
condominium, owned solely by the condominium
association and used exclusively in
the conduct of the business affairs of the
condominium association; or
b. Owned in common by the unit owners of the
condominium association.
We also insure such personal property for 45 days
while stored at a temporary location, as set forth in
III.C.2.b. Property Removed to Safety.
Page 5 of 18
2. When this policy covers personal property, coverage
will be either for household personal property or other
than household personal property, while within the
insured building, but not both.
a. If this policy covers household personal property,
it will insure household personal property usual to
a living quarters, that:
(1) Belongs to you, or a member of your
household, or at your option:
(a) Your domestic worker;
(b) Your guest; or
(2) You may be legally liable for.
b. If this policy covers other than household
personal property, it will insure your:
(1) Furniture and fixtures;
(2) Machinery and equipment;
(3) Stock; and
(4) Other personal property owned by you and
used in your business, subject to IV.
Property Not Covered.
3. Coverage for personal property includes the following
property, subject to B.1.a. and B.1.b. above, which is
covered under Coverage B only:
a. Air conditioning units installed in the building;
b. Carpet, not permanently installed, over
unfinished flooring;
c. Carpets over finished flooring;
d. Clothes washers and dryers;
e. "Cook-out" grills;
f. Food freezers, other than walk-in, and food in
any freezer;
g. Outdoor equipment and furniture stored inside
the insured building;
h. Ovens and the like; and
i. Portable microwave ovens and portable
dishwashers.
4. Coverage for items of property in a building
enclosure below the lowest elevated floor of an
elevated post-FIRM building located in Zones A1-
A30, AE, AH, AR, AR/A, AR/AE, AR/AH, AR/A1-A30,
V1-V30, or VE, or in a basement, regardless of the
zone, is limited to the following items, if installed in
their functioning locations and, if necessary for
operation, connected to a power source:
a. Air conditioning units, portable or window type;
b. Clothes washers and dryers; and
c. Food freezers, other than walk-in, and food in
any freezer.
5. Special Limits. We will pay no more than $2,500 for
any loss to one or more of the following kinds of
personal property:
a. Artwork, photographs, collectibles, or
memorabilia, including but not limited to,
porcelain or other figures, and sports cards;
b. Rare books or autographed items;
c. Jewelry, watches, precious and semiprecious
stones, or articles of gold, silver, or platinum;
d. Furs or any article containing fur which
represents its principal value.
6. We will pay only for the functional value of antiques.
7. If you are a tenant, you may apply up to 10 percent of
the Coverage B limit to improvements:
a. Made a part of the building you occupy; and
b. You acquired or made at your expense, even
though you cannot legally remove them.
This coverage does not increase the amount of
insurance that applies to insured personal property.
8. If you are a condominium unit owner, you may apply
up to 10 percent of the Coverage B limit to cover loss
to interior:
a. Walls;
b. Floors; and
c. Ceilings;
that are not covered under a policy issued to the
condominium association insuring the condominium
building.
This coverage does not increase the amount of
insurance that applies to insured personal property.
9. If you are a tenant, personal property must be inside
the fully enclosed building.
C. COVERAGE C - OTHER COVERAGES
1. Debris Removal
a. We will pay the expense to remove non-owned
debris on or in insured property and owned
debris anywhere.
b. If you or a member of your household perform
the removal work, the value of your work will be
based on the Federal minimum wage.
c. This coverage does not increase the Coverage A
or Coverage B limit of liability.
Page 6 of 18
2. Loss Avoidance Measures
a. Sandbags, Supplies, and Labor
(1) We will pay up to $1,000 for the costs you
incur to protect the insured building from a
flood or imminent danger of flood, for the
following:
(a) Your reasonable expenses to buy:
(i) Sandbags, including sand to fill
them;
(ii) Fill for temporary levees;
(iii) Pumps; and
(iv) Plastic sheeting and lumber used in
connection with these items; and
(b) The value of work, at the Federal
minimum wage, that you perform.
(2) This coverage for Sandbags, Supplies, and
Labor only applies if damage to insured
property by or from flood is imminent and
the threat of flood damage is apparent
enough to lead a person of common
prudence to anticipate flood damage. One
of the following must also occur:
(a) A general and temporary condition of
flooding in the area near the described
location must occur, even if the flood
does not reach the insured building; or
(b) A legally authorized official must issue
an evacuation order or other civil order
for the community in which the insured
building is located calling for measures
to preserve life and property from the
peril of flood.
This coverage does not increase the Coverage A
or Coverage B limit of liability.
b. Property Removed to Safety
(1) We will pay up to $1,000 for the reasonable
expenses you incur to move insured property
to a place other than the described location
that contains the property in order to protect
it from flood or the imminent danger of
flood.
Reasonable expenses include the value of
work, at the Federal minimum wage, that you
perform.
(2) If you move insured property to a location
other than the described location that
contains the property, in order to protect it
from flood or the imminent danger of flood,
we will cover such property while at that
location for a period of 45 consecutive days
from the date you begin to move it there. The
personal property that is moved must be
placed in a fully enclosed building or
otherwise reasonably protected from the
elements.
Any property removed, including a moveable
home described in II.B.6.b. and c., must be
placed above ground level or outside of the
special flood hazard area.
This coverage does not increase the Coverage A
or Coverage B limit of liability.
3. Pollution Damage
We will pay for damage caused by pollutants to
covered property if the discharge, seepage, migration,
release, or escape of the pollutants is caused by or
results from flood. The most we will pay under this
coverage is $10,000. This coverage does not
increase the Coverage A or Coverage B limits of
liability. Any payment under this provision when
combined with all other payments for the same loss
cannot exceed the replacement cost or actual cash
value, as appropriate, of the covered property. This
coverage does not include the testing for or the
monitoring of pollutants unless required by law or
ordinance.
D. COVERAGE D - INCREASED COST OF COMPLIANCE
1. General
This policy pays you to comply with a State or local
floodplain management law or ordinance affecting
repair or reconstruction of a structure suffering flood
damage. Compliance activities eligible for payment
are: elevation, floodproofing, relocation, or demolition
(or any combination of these activities) of your
structure. Eligible floodproofing activities are limited
to:
a. Nonresidential structures.
b. Residential structures with basements that
satisfy FEMA's standards published in the Code
of Federal Regulations [44 CFR 60.6 (b) or (c)].
2. Limit of Liability
We will pay you up to $30,000 under this Coverage D
- Increased Cost of Compliance, which only applies to
policies with building coverage (Coverage A).
Page 7 of 18
Our payment of claims under Coverage D is in
addition to the amount of coverage which you
selected on the application and which appears on
the Declarations Page. But the maximum you can
collect under this policy for both Coverage A -
Building Property and Coverage D - Increased Cost of
Compliance cannot exceed the maximum permitted
under the Act. We do not charge a separate
deductible for a claim under Coverage D.
3. Eligibility
a. A structure covered under Coverage A - Building
Property sustaining a loss caused by a flood as
defined by this policy must:
(1) Be a "repetitive loss structure." A repetitive
loss structure is one that meets the following
conditions:
(a) The structure is covered by a contract of
flood insurance issued under the NFIP.
(b) The structure has suffered flood
damage on two occasions during a 10-
year period which ends on the date of
the second loss.
(c) The cost to repair the flood damage, on
average, equaled or exceeded 25
percent of the market value of the
structure at the time of each flood loss.
(d) In addition to the current claim, the NFIP
must have paid the previous qualifying
claim, and the State or community must
have a cumulative, substantial damage
provision or repetitive loss provision in
its floodplain management law or
ordinance being enforced against the
structure; or
(2) Be a structure that has had flood damage in
which the cost to repair equals or exceeds
50 percent of the market value of the
structure at the time of the flood. The State
or community must have a substantial
damage provision in its floodplain
management law or ordinance being
enforced against the structure.
b. This Coverage D pays you to comply with State
or local floodplain management laws or
ordinances that meet the minimum standards of
the National Flood Insurance Program found in
the Code of Federal Regulations at 44 CFR 60.3.
We pay for compliance activities that exceed
those standards under these conditions:
(1) 3.a.(1) above.
(2) Elevation or floodproofing in any risk zone to
preliminary or advisory base flood
elevations provided by FEMA which the
State or local government has adopted and
is enforcing for flood-damaged structures in
such areas. (This includes compliance
activities in B, C, X, or D zones which are
being changed to zones with base flood
elevations. This also includes compliance
activities in zones where base flood
elevations are being increased, and a flooddamaged
structure must comply with the
higher advisory base flood elevation.)
Increased Cost of Compliance coverage
does not apply to situations in B, C, X, or D
zones where the community has derived its
own elevations and is enforcing elevation or
floodproofing requirements for flooddamaged
structures to elevations derived
solely by the community.
(3) Elevation or floodproofing above the base
flood elevation to meet State or local
"freeboard" requirements, i.e., that a
structure must be elevated above the base
flood elevation.
c. Under the minimum NFIP criteria at 44 CFR 60.3
(b)(4), States and communities must require the
elevation or floodproofing of structures in
unnumbered A zones to the base flood elevation
where elevation data is obtained from a Federal,
State, or other source. Such compliance activities
are also eligible for Coverage D.
d. This coverage will also pay for the incremental
cost, after demolition or relocation, of elevating or
floodproofing a structure during its rebuilding at
the same or another site to meet State or local
floodplain management laws or ordinances,
subject to Exclusion D.5.g. below.
e. This coverage will also pay to bring a flooddamaged
structure into compliance with State or
local floodplain management laws or ordinances
even if the structure had received a variance
before the present loss from the applicable
floodplain management requirements.
4. Conditions
a. When a structure covered under Coverage A -
Building Property sustains a loss caused by a
flood, our payment for the loss under this
Coverage D will be for the increased cost to
elevate, floodproof, relocate, or demolish (or any
combination of these activities) caused by the
enforcement of current State or local floodplain
management ordinances or laws. Our payment
for eligible demolition activities will be for the cost
to demolish and clear the site of the building
debris or a portion thereof caused by the
Page 8 of 18
enforcement of current State or local floodplain
management ordinances or laws. Eligible activities
for the cost of clearing the site will include those
necessary to discontinue utility service to the site
and ensure proper abandonment of on-site
utilities.
b. When the building is repaired or rebuilt, it must be
intended for the same occupancy as the present
building unless otherwise required by current
floodplain management ordinances or laws.
5. Exclusions
Under this Coverage D - Increased Cost of Compliance
we will not pay for:
a. The cost to comply with any floodplain
management law or ordinance in communities
participating in the Emergency Program.
b. The cost associated with enforcement of any
ordinance or law that requires any insured or
others to test for, monitor, clean up, remove,
contain, treat, detoxify or neutralize, or in any way
respond to, or assess the effects of pollutants.
c. The loss in value to any insured building or other
structure due to the requirements of any ordinance
or law.
d. The loss in residual value of the undamaged
portion of a building demolished as a consequence
of enforcement of any State or local
floodplain management law or ordinance.
e. Any Increased Cost of Compliance under this
Coverage D:
(1) Until the building is elevated, floodproofed,
demolished, or relocated on the same or to
another premises; and
(2) Unless the building is elevated, flood-proofed,
demolished, or relocated as soon as
reasonably possible after the loss, not to
exceed 2 years.
f. Any code upgrade requirements, e. g., plumbing or
electrical wiring, not specifically related to the State
or local floodplain management law or ordinance.
g. Any compliance activities needed to bring
additions or improvements made after the loss
occurred into compliance with State or local
floodplain management laws or ordinances.
h. Loss due to any ordinance or law that you were
required to comply with before the current loss.
i. Any rebuilding activity to standards that do not
meet the NFIP's minimum requirements. This
includes any situation where the insured has
received from the State or community a variance
in connection with the current flood loss to rebuild
the property to an elevation below the base flood
elevation.
j. Increased Cost of Compliance for a garage or
carport.
k. Any structure insured under an NFIP Group Flood
Insurance Policy.
l. Assessments made by a condominium
association on individual condominium unit
owners to pay increased costs of repairing
commonly owned buildings after a flood in
compliance with State or local floodplain
management ordinances or laws.
6. Other Provisions
All other conditions and provisions of this policy
apply.
IV. PROPERTY NOT COVERED
We do not cover any of the following property:
1. Personal property not inside the fully enclosed
building;
2. A building, and personal property in it, located
entirely in, on, or over water or seaward of mean high
tide, if it was constructed or substantially improved
after September 30, 1982;
3. Open structures, including a building used as a
boathouse or any structure or building into which
boats are floated, and personal property located in,
on, or over water;
4. Recreational vehicles other than travel trailers
described in II.B.6.c., whether affixed to a permanent
foundation or on wheels;
5. Self-propelled vehicles or machines, including their
parts and equipment. However, we do cover selfpropelled
vehicles or machines not licensed for use
on public roads that are:
a. Used mainly to service the described location,
or
Page 9 of 18
b. Designed and used to assist handicapped
persons,
while the vehicles or machines are inside a building
at the described location;
6. Land, land values, lawns, trees, shrubs, plants,
growing crops, or animals;
7. Accounts, bills, coins, currency, deeds, evidences of
debt, medals, money, scrip, stored value cards,
postage stamps, securities, bullion, manuscripts, or
other valuable papers;
8. Underground structures and equipment, including
wells, septic tanks, and septic systems;
9. Those portions of walks, walkways, decks, driveways,
patios, and other surfaces, all whether protected by a
roof or not, located outside the perimeter, exterior
walls of the insured building;
10. Containers, including related equipment, such as, but
not limited to, tanks containing gases or liquids;
11. Buildings or units and all their contents if more than
49 percent of the actual cash value of the building
or unit is below ground, unless the lowest level is at
or above the base flood elevation and is below
ground by reason of earth having been used as
insulation material in conjunction with energy efficient
building techniques;
12. Fences, retaining walls, seawalls, bulkheads,
wharves, piers, bridges, and docks;
13. Aircraft or watercraft, or their furnishings and
equipment;
14. Hot tubs and spas that are not bathroom fixtures, and
swimming pools, and their equipment such as, but not
limited to, heaters, filters, pumps, and pipes, wherever
located;
15. Property not eligible for flood insurance pursuant to
the provisions of the Coastal Barrier Resources Act
and the Coastal Barrier Improvement Act of 1990 and
amendments to these acts;
16. Personal property owned by or in the care, custody,
or control of a unit owner, except for property of the
type and under the circumstances set forth under
Coverage B - Personal Property;
17. A residential condominium building located in a
Regular Program community.
V. EXCLUSIONS
A. We only provide coverage for direct physical loss
by or from flood, which means that we do not pay
you for:
1. Loss of revenue or profits;
2. Loss of access to the insured property or described
location;
3. Loss of use of the insured property or described
location;
4. Loss from interruption of business or production;
5. Any additional living expenses incurred while the
insured building is being repaired or is unable to be
occupied for any reason;
6. The cost of complying with any ordinance or law
requiring or regulating the construction, demolition,
remodeling, renovation, or repair of property,
including removal of any resulting debris. This
exclusion does not apply to any eligible activities that
we describe in Coverage D - Increased Cost of
Compliance; or
7. Any other economic loss.
B. We do not insure a loss directly or indirectly caused
by a flood that is already in progress at the date and
time:
1. The policy term begins; or
2. Coverage is added at your request.
C. We do not insure for loss to property caused directly
by earth movement even if the earth movement is
caused by flood. Some examples of earth movement
that we do not cover are:
1. Earthquake;
2. Landslide;
3. Land subsidence;
4. Sinkholes;
5. Destabilization or movement of land that results from
accumulation of water in subsurface land areas; or
Page 10 of 18
6. Gradual erosion.
We do, however, pay for losses from mudflow and land
subsidence as a result of erosion that are specifically
covered under our definition of flood (see II.A.1.c. and
II.A.2.).
D. We do not insure for direct physical loss caused
directly or indirectly by:
1. The pressure or weight of ice;
2. Freezing or thawing;
3. Rain, snow, sleet, hail, or water spray;
4. Water, moisture, mildew, or mold damage that results
primarily from any condition:
a. Substantially confined to the insured building; or
b. That is within your control including, but not
limited to:
(1) Design, structural, or mechanical defects;
(2) Failure, stoppage, or breakage of water or
sewer lines, drains, pumps, fixtures, or
equipment; or
(3) Failure to inspect and maintain the property
after a flood recedes;
5. Water or waterborne material that:
a. Backs up through sewers or drains;
b. Discharges or overflows from a sump, sump
pump, or related equipment; or
c. Seeps or leaks on or through insured property;
unless there is a flood in the area and the flood is the
proximate cause of the sewer or drain backup, sump
pump discharge or overflow, or the seepage of water;
6. The pressure or weight of water unless there is a
flood in the area and the flood is the proximate
cause of the damage from the pressure or weight of
water;
7. Power, heating, or cooling failure unless the failure
results from direct physical loss by or from flood to
power, heating, or cooling equipment situated on the
described location;
8. Theft, fire, explosion, wind, or windstorm;
9. Anything you or your agent do or conspire to do to
cause loss by flood deliberately; or
10. Alteration of the insured property that significantly
increases the risk of flooding.
E. We do not insure for loss to any building or personal
property located on land leased from the Federal
Government, arising from or incident to the flooding of
the land by the Federal Government, where the lease
expressly holds the Federal Government harmless
under flood insurance issued under any Federal
Government program.
VI. DEDUCTIBLES
A. When a loss is covered under this policy, we will pay
only that part of the loss that exceeds the applicable
deductible amount, subject to the limit of liability that
applies. The deductible amount is shown on the
Declarations Page.
However, when a building under construction,
alteration, or repair does not have at least two rigid
exterior walls and a fully secured roof at the time of
loss, your deductible amount will be two times the
deductible that would otherwise apply to a completed
building.
B. In each loss from flood, separate deductibles apply to
the building and personal property insured by this
policy.
C. No deductible applies to:
1. III.C.2. Loss Avoidance Measures; or
2. III.D. Increased Cost of Compliance.
VII. GENERAL CONDITIONS
A. Pairs and Sets
In case of loss to an article that is part of a pair or set, we
will have the option of paying you:
1. An amount equal to the cost of replacing the lost,
damaged, or destroyed article, less depreciation; or
2. An amount that represents the fair proportion of the
total value of the pair or set that the lost, damaged, or
destroyed article bears to the pair or set.
Page 11 of 18
B. Concealment or Fraud and Policy Voidance
1. With respect to all insureds under this policy, this
policy:
a. Is void;
b. Has no legal force or effect;
c. Cannot be renewed; and
d. Cannot be replaced by a new NFIP policy;
if, before or after a loss, you or any other insured or
your agent have at any time:
(1) Intentionally concealed or misrepresented
any material fact or circumstance;
(2) Engaged in fraudulent conduct; or
(3) Made false statements;
relating to this policy or any other NFIP
insurance.
2. This policy will be void as of the date the wrongful
acts described in B.1. above were committed.
3. Fines, civil penalties, and imprisonment under
applicable Federal laws may also apply to the acts of
fraud or concealment described above.
4. This policy is also void for reasons other than fraud,
misrepresentation, or wrongful act. This policy is void
from its inception and has no legal force under the
following conditions:
a. If the property is located in a community that was
not participating in the NFIP on the policy's
inception date and did not join or reenter the
program during the policy term and before the
loss occurred; or
b. If the property listed on the application is
otherwise not eligible for coverage under the
NFIP.
C. Other Insurance
1. If a loss covered by this policy is also covered by
other insurance that includes flood coverage not
issued under the Act, we will not pay more than the
amount of insurance that you are entitled to for lost,
damaged, or destroyed property insured under this
policy subject to the following:
a. We will pay only the proportion of the loss that
the amount of insurance that applies under this
policy bears to the total amount of insurance
covering the loss, unless C.1.b. or c. immediately
below applies.
b. If the other policy has a provision stating that it is
excess insurance, this policy will be primary.
c. This policy will be primary (but subject to its own
deductible) up to the deductible in the other flood
policy (except another policy as described in
C.1.b. above). When the other deductible amount
is reached, this policy will participate in the same
proportion that the amount of insurance under
this policy bears to the total amount of both
policies, for the remainder of the loss.
2. If this policy covers a condominium association
and there is a flood insurance policy in the name of a
unit owner that covers the same loss as this policy,
then this policy will be primary.
D. Amendments, Waivers, Assignment
This policy cannot be changed nor can any of its
provisions be waived without the express written consent
of the Federal Insurance Administrator. No action that we
take under the terms of this policy can constitute a waiver
of any of our rights. You may assign this policy in writing
when you transfer title of your property to someone else,
except under these conditions:
1. When this policy covers only personal property; or
2. When this policy covers a structure during the course
of construction.
E. Cancellation of Policy by You
1. You may cancel this policy in accordance with the
applicable rules and regulations of the NFIP.
2. If you cancel this policy, you may be entitled to a full
or partial refund of premium also under the applicable
rules and regulations of the NFIP.
F. Nonrenewal of the Policy by Us
Your policy will not be renewed:
1. If the community where your covered property is
located stops participating in the NFIP; or
2. If your building has been declared ineligible under
Section 1316 of the Act.
G. Reduction and Reformation of Coverage
1. If the premium we received from you was not enough
to buy the kind and amount of coverage you
requested, we will provide only the amount of
coverage that can be purchased for the premium
payment we received.
Page 12 of 18
2. The policy can be reformed to increase the amount
of coverage resulting from the reduction described in
G.1. above to the amount you requested as follows:
a. Discovery of insufficient premium or incomplete
rating information before a loss.
(1) If we discover before you have a flood loss
that your premium payment was not enough
to buy the requested amount of coverage,
we will send you and any mortgagee or
trustee known to us a bill for the required
additional premium for the current policy
term (or that portion of the current policy
term following any endorsement changing
the amount of coverage). If you or the
mortgagee or trustee pay the additional
premium within 30 days from the date of our
bill, we will reform the policy to increase the
amount of coverage to the originally
requested amount effective to the beginning
of the current policy term (or subsequent
date of any endorsement changing the
amount of coverage).
(2) If we determine before you have a flood loss
that the rating information we have is
incomplete and prevents us from calculating
the additional premium, we will ask you to
send the required information. You must
submit the information within 60 days of our
request. Once we determine the amount of
additional premium for the current policy
term, we will follow the procedure in
G.2.a.(1) above.
(3) If we do not receive the additional premium
(or additional information) by the date it is
due, the amount of coverage can only be
increased by endorsement subject to any
appropriate waiting period.
b. Discovery of insufficient premium or incomplete
rating information after a loss.
(1) If we discover after you have a flood loss
that your premium payment was not enough
to buy the requested amount of coverage,
we will send you and any mortgagee or
trustee known to us a bill for the required
additional premium for the current and the
prior policy terms. If you or the mortgagee
or trustee pay the additional premium within
30 days from the date of our bill, we will
reform the policy to increase the amount of
coverage to the originally requested amount
effective to the beginning of the prior policy
term.
(2) If we discover after you have a flood loss
that the rating information we have is
incomplete and prevents us from calculating
the additional premium, we will ask you to
send the required information. You must
submit the information before your claim can
be paid. Once we determine the amount of
additional premium for the current and prior
policy terms, we will follow the procedure in
G.2.b.(1) above.
(3) If we do not receive the additional premium
by the date it is due, your flood insurance
claim will be settled based on the reduced
amount of coverage. The amount of
coverage can only be increased by
endorsement subject to any appropriate
waiting period.
3. However, if we find that you or your agent
intentionally did not tell us, or falsified, any important
fact or circumstance or did anything fraudulent
relating to this insurance, the provisions of Condition
B. Concealment or Fraud and Policy Voidance apply.
H. Policy Renewal
1. This policy will expire at 12:01 a.m. on the last day of
the policy term.
2. We must receive the payment of the appropriate
renewal premium within 30 days of the expiration
date.
3. If we find, however, that we did not place your
renewal notice into the U.S. Postal Service, or if we
did mail it, we made a mistake, e.g., we used an
incorrect, incomplete, or illegible address, which
delayed its delivery to you before the due date for the
renewal premium, then we will follow these
procedures:
a. If you or your agent notified us, not later than one
year after the date on which the payment of the
renewal premium was due, of nonreceipt of a
renewal notice before the due date for the
renewal premium, and we determine that the
circumstances in the preceding paragraph apply,
we will mail a second bill providing a revised due
date, which will be 30 days after the date on
which the bill is mailed.
b. If we do not receive the premium requested in the
second bill by the revised due date, then we will
not renew the policy. In that case, the policy will
remain an expired policy as of the expiration
date shown on the Declarations Page.
4. In connection with the renewal of this policy, we may
ask you during the policy term to recertify, on a
Recertification Questionnaire that we will provide to
you, the rating information used to rate your most
recent application for or renewal of insurance.
I. Conditions Suspending or Restricting Insurance
We are not liable for loss that occurs while there is a hazard
that is increased by any means within your control or
knowledge.
Page 13 of 18
J. Requirements in Case of Loss
In case of a flood loss to insured property, you must:
1. Give prompt written notice to us;
2. As soon as reasonably possible, separate the
damaged and undamaged property, putting it in the
best possible order so that we may examine it;
3. Prepare an inventory of damaged property showing
the quantity, description, actual cash value, and
amount of loss. Attach all bills, receipts, and related
documents;
4. Within 60 days after the loss, send us a proof of loss,
which is your statement of the amount you are
claiming under the policy signed and sworn to by
you, and which furnishes us with the following
information:
a. The date and time of loss;
b. A brief explanation of how the loss happened;
c. Your interest (for example, "owner") and the
interest, if any, of others in the damaged
property;
d. Details of any other insurance that may cover the
loss;
e. Changes in title or occupancy of the insured
property during the term of the policy;
f. Specifications of damaged buildings and
detailed repair estimates;
g. Names of mortgagees or anyone else having a
lien, charge, or claim against the insured
property;
h. Details about who occupied any insured building
at the time of loss and for what purpose; and
i. The inventory of damaged property described in
J.3. above.
5. In completing the proof of loss, you must use your
own judgment concerning the amount of loss and
justify that amount.
6. You must cooperate with the adjuster or
representative in the investigation of the claim.
7. The insurance adjuster whom we hire to investigate
your claim may furnish you with a proof of loss form,
and she or he may help you complete it. However,
this is a matter of courtesy only, and you must still
send us a proof of loss within 60 days after the loss
even if the adjuster does not furnish the form or help
you complete it.
8. We have not authorized the adjuster to approve or
disapprove claims or to tell you whether we will
approve your claim.
9. At our option, we may accept the adjuster's report of
the loss instead of your proof of loss. The adjuster's
report will include information about your loss and the
damages you sustained. You must sign the adjuster's
report. At our option, we may require you to swear to
the report.
K. Our Options After a Loss
Options we may, in our sole discretion, exercise after loss
include the following:
1. At such reasonable times and places that we may
designate, you must:
a. Show us or our representative the damaged
property;
b. Submit to examination under oath, while not in
the presence of another insured, and sign the
same; and
c. Permit us to examine and make extracts and
copies of:
(1) Any policies of property insurance insuring
you against loss and the deed establishing
your ownership of the insured real property;
(2) Condominium association documents
including the Declarations of the
condominium, its Articles of Association or
Incorporation, Bylaws, and rules and
regulations; and
(3) All books of accounts, bills, invoices and
other vouchers, or certified copies pertaining
to the damaged property if the originals are
lost.
2. We may request, in writing, that you furnish us with a
complete inventory of the lost, damaged, or destroyed
property, including:
a. Quantities and costs;
b. Actual cash values;
c. Amounts of loss claimed;
d. Any written plans and specifications for repair of
the damaged property that you can reasonably
make available to us; and
e. Evidence that prior flood damage has been
repaired.
3. If we give you written notice within 30 days after we
receive your signed, sworn proof of loss, we may:
Page 14 of 18
a. Repair, rebuild, or replace any part of the lost,
damaged, or destroyed property with material or
property of like kind and quality or its functional
equivalent; and
b. Take all or any part of the damaged property at
the value we agree upon or its appraised value.
L. No Benefit to Bailee
No person or organization, other than you, having custody
of covered property will benefit from this insurance.
M. Loss Payment
1. We will adjust all losses with you. We will pay you
unless some other person or entity is named in the
policy or is legally entitled to receive payment. Loss
will be payable 60 days after we receive your proof of
loss (or within 90 days after the insurance adjuster
files an adjuster’s report signed and sworn to by you
in lieu of a proof of loss) and:
a. We reach an agreement with you;
b. There is an entry of a final judgment; or
c. There is a filing of an appraisal award with us, as
provided in VII.P.
2. If we reject your proof of loss in whole or in part you
may:
a. Accept such denial of your claim;
b. Exercise your rights under this policy; or
c. File an amended proof of loss, as long as it is
filed within 60 days of the date of the loss.
N. Abandonment
You may not abandon damaged or undamaged insured
property to us.
O. Salvage
We may permit you to keep damaged insured property
after a loss, and we will reduce the amount of the loss
proceeds payable to you under the policy by the value of
the salvage.
P. Appraisal
If you and we fail to agree on the actual cash value of the
damaged property so as to determine the amount of loss,
either may demand an appraisal of the loss. In this event,
you and we will each choose a competent and impartial
appraiser within 20 days after receiving a written request
from the other. The two appraisers will choose an umpire.
If they cannot agree upon an umpire within 15 days, you
or we may request that the choice be made by a judge of
a court of record in the State where the insured property is
located. The appraisers will separately state the actual
cash value and the amount of loss to each item. If the
appraisers submit a written report of an agreement to us,
the amount agreed upon will be the amount of loss. If they
fail to agree, they will submit their differences to the
umpire. A decision agreed to by any two will set the
amount of actual cash value and loss.
Each party will:
1. Pay its own appraiser; and
2. Bear the other expenses of the appraisal and umpire
equally.
Q. Mortgage Clause
The word "mortgagee" includes trustee.
Any loss payable under Coverage A - Building Property
will be paid to any mortgagee of whom we have actual
notice as well as any other mortgagee or loss payee
determined to exist at the time of loss, and you, as
interests appear. If more than one mortgagee is named,
the order of payment will be the same as the order of
precedence of the mortgages.
If we deny your claim, that denial will not apply to a valid
claim of the mortgagee, if the mortgagee:
1. Notifies us of any change in the ownership or
occupancy, or substantial change in risk of which the
mortgagee is aware;
2. Pays any premium due under this policy on demand
if you have neglected to pay the premium; and
3. Submits a signed, sworn proof of loss within 60 days
after receiving notice from us of your failure to do so.
All of the terms of this policy apply to the mortgagee.
The mortgagee has the right to receive loss payment even
if the mortgagee has started foreclosure or similar action
on the building.
If we decide to cancel or not renew this policy, it will
continue in effect for the benefit of the mortgagee only for
30 days after we notify the mortgagee of the cancellation
or nonrenewal.
If we pay the mortgagee for any loss and deny payment to
you, we are subrogated to all the rights of the mortgagee
granted under the mortgage on the property. Subrogation
will not impair the right of the mortgagee to recover the full
amount of the mortgagee's claim.
R. Suit Against Us
You may not sue us to recover money under this policy
unless you have complied with all the requirements of the
policy. If you do sue, you must start the suit within one
year of the date of the written denial of all or part of the
Page 15 of 18
claim, and you must file the suit in the United States
District Court of the district in which the insured property
was located at the time of loss. This requirement applies
to any claim that you may have under this policy and to
any dispute that you may have arising out of the handling
of any claim under the policy.
S. Subrogation
Whenever we make a payment for a loss under this
policy, we are subrogated to your right to recover for that
loss from any other person. That means that your right to
recover for a loss that was partly or totally caused by
someone else is automatically transferred to us, to the
extent that we have paid you for the loss. We may require
you to acknowledge this transfer in writing. After the loss,
you may not give up our right to recover this money or do
anything that would prevent us from recovering it. If you
make any claim against any person who caused your loss
and recover any money, you must pay us back first before
you may keep any of that money.
T. Continuous Lake Flooding
1. If your insured building has been flooded by rising
lake waters continuously for 90 days or more and it
appears reasonably certain that a continuation of this
flooding will result in a covered loss to the insured
building equal to or greater than the building policy
limits plus the deductible or the maximum payable
under the policy for any one building loss, we will
pay you the lesser of these two amounts without
waiting for the further damage to occur if you sign a
release agreeing:
a. To make no further claim under this policy;
b. Not to seek renewal of this policy;
c. Not to apply for any flood insurance under the
Act for property at the described location; and
d. Not to seek a premium refund for current or prior
terms.
If the policy term ends before the insured building
has been flooded continuously for 90 days, the
provisions of this paragraph T.1. will apply when the
insured building suffers a covered loss before the
policy term ends.
2. If your insured building is subject to continuous lake
flooding from a closed basin lake, you may elect to file
a claim under either paragraph T.1. above or this
paragraph T.2. (A "closed basin lake" is a natural lake
from which water leaves primarily through evaporation
and whose surface area now exceeds or has exceeded
one square mile at any time in the recorded past. Most
of the nation's closed basin lakes are in the western
half of the United States, where annual evaporation
exceeds annual precipitation and where lake levels and
surface areas are subject to considerable fluctuation
due to wide variations in the climate. These lakes may
overtop their basins on rare occasions.) Under this
paragraph T.2. we will pay your claim as if the building
is a total loss even though it has not been continuously
inundated for 90 days, subject to the following
conditions:
a. Lake flood waters must damage or imminently
threaten to damage your building.
b. Before approval of your claim, you must:
(1) Agree to a claim payment that reflects your
buying back the salvage on a negotiated
basis; and
(2) Grant the conservation easement described in
FEMA's "Policy Guidance for Closed Basin
Lakes," to be recorded in the office of the local
recorder of deeds. FEMA, in consultation with
the community in which the property is
located, will identify on a map an area or
areas of special consideration (ASC) in which
there is a potential for flood damage from
continuous lake flooding. FEMA will give the
community the agreed-upon map showing the
ASC. This easement will only apply to that
portion of the property in the ASC. It will allow
certain agricultural and recreational uses of
the land. The only structures that it will allow
on any portion of the property within the ASC
are certain simple agricultural and recreational
structures. If any of these allowable structures
are insurable buildings under the NFIP and
are insured under the NFIP, they will not be
eligible for the benefits of this paragraph T.2.
If a U.S. Army Corps of Engineers certified
flood control project or otherwise certified
flood control project later protects the
property, FEMA will, upon request, amend the
ASC to remove areas protected by those
projects. The restrictions of the easement will
then no longer apply to any portion of the
property removed from the ASC; and
(3) Comply with paragraphs T.1.a. through T.1.d.
above.
c. Within 90 days of approval of your claim, you must
move your building to a new location outside the
ASC. FEMA will give you an additional 30 days to
move if you show that there is sufficient reason to
extend the time.
d. Before the final payment of your claim, you must
acquire an elevation certificate and a floodplain
development permit from the local floodplain
administrator for the new location of your building.
e. Before the approval of your claim, the community
having jurisdiction over your building must:
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(1) Adopt a permanent land use ordinance, or a
temporary moratorium for a period not to
exceed 6 months to be followed immediately
by a permanent land use ordinance, that is
consistent with the provisions specified for
the easement required in paragraph T.2.b.
above;
(2) Agree to declare and report any violations of
this ordinance to FEMA so that under Section
1316 of the National Flood Insurance Act of
1968, as amended, flood insurance to the
building can be denied; and
(3) Agree to maintain as deed-restricted, for
purposes compatible with open space or
agricultural or recreational use only, any
affected property the community acquires an
interest in. These deed restrictions must be
consistent with the provisions of paragraph
T.2.b. above, except that, even if a certified
project protects the property, the land use
restrictions continue to apply if the property
was acquired under the Hazard Mitigation
Grant Program or the Flood Mitigation
Assistance Program. If a nonprofit land trust
organization receives the property as a
donation, that organization must maintain the
property as deed-restricted, consistent with
the provisions of paragraph T.2.b. above.
f. Before the approval of your claim, the affected
State must take all action set forth in FEMA's
"Policy Guidance for Closed Basin Lakes."
g. You must have NFIP flood insurance coverage
continuously in effect from a date established by
FEMA until you file a claim under this paragraph
T.2. If a subsequent owner buys NFIP insurance
that goes into effect within 60 days of the date of
transfer of title, any gap in coverage during that
60-day period will not be a violation of this
continuous coverage requirement. For the purpose
of honoring a claim under this paragraph T.2., we
will not consider to be in effect any increased
coverage that became effective after the date
established by FEMA. The exception to this is any
increased coverage in the amount suggested by
your insurer as an inflation adjustment.
h. This paragraph T.2. will be in effect for a
community when the FEMA Regional Director for
the affected region provides to the community, in
writing, the following:
(1) Confirmation that the community and the
State are in compliance with the conditions in
paragraphs T.2.e. and T.2.f. above; and
(2) The date by which you must have flood
insurance in effect.
U. Duplicate Policies Not Allowed
1. We will not insure your property under more than one
NFIP policy.
If we find that the duplication was not knowingly
created, we will give you written notice. The notice will
advise you that you may choose one of several
options under the following procedures:
a. If you choose to keep in effect the policy with the
earlier effective date, you may also choose to
add the coverage limits of the later policy to the
limits of the earlier policy. The change will
become effective as of the effective date of the
later policy.
b. If you choose to keep in effect the policy with the
later effective date, you may also choose to add
the coverage limits of the earlier policy to the
limits of the later policy. The change will be
effective as of the effective date of the later
policy.
In either case, you must pay the pro rata premium for
the increased coverage limits within 30 days of the
written notice. In no event will the resulting coverage
limits exceed the permissible limits of coverage under
the Act or your insurable interest, whichever is less.
We will make a refund to you, according to applicable
NFIP rules, of the premium for the policy not being
kept in effect.
2. The insured’s option under this Condition U. Duplicate
Policies Not Allowed to elect which NFIP policy to
keep in effect does not apply when duplicates have
been knowingly created. Losses occurring under such
circumstances will be adjusted according to the terms
and conditions of the earlier policy. The policy with
the later effective date must be canceled.
V. Loss Settlement
We will pay the least of the following amounts after
application of the deductible:
1. The applicable amount of insurance under this policy;
2. The actual cash value; or
3. The amount it would cost to repair or replace the
property with material of like kind and quality within a
reasonable time after the loss.